Financial comparison between CyrusOne (NASDAQ:CONE) and Apollo Commercial Real Estate Finance (NYSE:ARI)


Cyrus One (NASDAQ: CONEGet a rating) and Apollo Commercial Real Estate Finance (NYSE: ARIGet a rating) are both finance companies, but which stock is superior? We’ll compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings, and risk.

Profitability

This table compares the net margins, return on equity and return on assets of CyrusOne and Apollo Commercial Real Estate Finance.

Net margins Return on equity return on assets
CyrusOne 2.10% 1.02% 0.39%
Apollo Commercial Real Estate Financing 81.92% 8.92% 2.61%

Volatility and risk

CyrusOne has a beta of 0.37, suggesting its stock price is 63% less volatile than the S&P 500. Comparatively, Apollo Commercial Real Estate Finance has a beta of 1.24, suggesting its stock price is 24% more volatile than the S&P 500.

Institutional and insider ownership

87.9% of CyrusOne shares are held by institutional investors. In comparison, 57.3% of Apollo Commercial Real Estate Finance shares are held by institutional investors. 0.3% of CyrusOne shares are held by insiders of the company. By comparison, 0.6% of Apollo Commercial Real Estate Finance shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Dividends

CyrusOne pays an annual dividend of $2.08 per share and has a dividend yield of 2.3%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.40 per share and has a dividend yield of 10.1%. CyrusOne pays out 990.5% of its earnings in the form of a dividend, which suggests it may not have enough earnings to cover its dividend payment in the future. Apollo Commercial Real Estate Finance pays 100.0% of its earnings as a dividend, suggesting that it may not have enough earnings to cover its dividend payment in the future. CyrusOne has increased its dividend for 8 consecutive years. Apollo Commercial Real Estate Finance is clearly the best dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CyrusOne and Apollo Commercial Real Estate Finance, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
CyrusOne 0 15 2 0 2.12
Apollo Commercial Real Estate Financing 0 1 0 0 2.00

CyrusOne currently has a consensus price target of $87.26, suggesting a potential decline of 3.43%. Given CyrusOne’s stronger consensus rating and higher likely upside, equity research analysts clearly believe CyrusOne is more favorable than Apollo Commercial Real Estate Finance.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of CyrusOne and Apollo Commercial Real Estate Finance.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
CyrusOne $1.21 billion 9.71 $25.30 million $0.21 430.29
Apollo Commercial Real Estate Financing $265.59 million 7.33 $223.51 million $1.40 9.89

Apollo Commercial Real Estate Finance has lower revenue but higher profit than CyrusOne. Apollo Commercial Real Estate Finance trades at a lower price-to-earnings ratio than CyrusOne, indicating that it is currently the more affordable of the two stocks.

Summary

Apollo Commercial Real Estate Finance beats CyrusOne on 9 out of 17 factors compared between the two stocks.

About Cyrus One (Get a rating)

CyrusOne, Inc. is a real estate investment trust that operates and develops enterprise-class, carrier-neutral, multi-tenant and single-tenant data center properties. The company provides data center facilities that protect and ensure the continuous operation of the IT infrastructure. Its data center properties are purpose-built facilities with redundant power, cooling and telecommunications systems that are not network-specific, enabling customer interconnectivity with a range of telecommunications carriers. The company was founded by David H. Ferdman in 2001 and is based in Dallas, TX.

About Apollo Commercial Real Estate Finance (Get a rating)

Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgages, subordinate financings, and other real estate-related debt investments commercial in the United States. It qualifies as a REIT under the Tax Code. As a REIT, it would not be subject to federal income tax if the company distributed at least 90% of its taxable REIT income to its shareholders. Apollo Commercial Real Estate Finance, Inc. was founded in 2009 and is based in New York, New York.



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